Capri Holdings Reports 14.1% Revenue Decline and $1.182 Billion Net Loss for Fiscal Year Ending March 29, 2025

Capri Holdings Limited reported a significant decline in financial performance for the fiscal year ending March 29, 2025, with total revenue falling to $4.442 billion, a decrease of 14.1% from $5.170 billion in the previous fiscal year. The decline was attributed to a global slowdown in demand for luxury fashion goods and underperformance of strategic initiatives at its Versace and Michael Kors brands. The company also recorded a net loss attributable to Capri of $1.182 billion, compared to a loss of $229 million in the prior year. This loss was exacerbated by impairment charges totaling $797 million, primarily related to goodwill and intangible assets for the Versace and Jimmy Choo brands.

In terms of segment performance, Versace's revenue decreased by 20.3% to $821 million, while Jimmy Choo's revenue fell by 2.1% to $605 million. Michael Kors experienced a revenue drop of 14.4%, totaling $3.016 billion. The overall gross profit margin also declined, from 64.6% to 63.6%, reflecting lower full-price sell-throughs and an unfavorable geographic revenue mix. Selling, general, and administrative expenses decreased by 7.3% to $2.581 billion, but as a percentage of total revenue, these expenses increased to 58.1% due to revenue declines.

Strategically, Capri Holdings is undergoing a significant transition, including the proposed sale of its Versace brand to Prada S.p.A. for $1.375 billion, which is expected to close in early 2026, pending regulatory approvals. This sale is part of a broader strategy to streamline operations and focus on core brands. The company has also been implementing a multi-year transformation program aimed at enhancing operational efficiency and digital capabilities across its brands.

Operationally, Capri Holdings reported a total of 1,158 retail stores worldwide as of March 29, 2025, a decrease from 1,239 the previous year. The company employed approximately 14,200 individuals, down from 15,100 in the prior year. The decline in employee count reflects ongoing restructuring efforts as part of the Global Optimization Plan, which aims to maximize efficiency and support long-term profitable growth. The company continues to face challenges related to macroeconomic conditions, including inflation and changing consumer preferences, which may impact future performance.

Looking ahead, Capri Holdings anticipates that the luxury goods market will recover, projecting a compound annual growth rate of 4-6% from 2024 to 2030. However, the company remains cautious, citing potential risks from macroeconomic pressures, competition, and the execution of its strategic initiatives. The management's focus will be on enhancing brand desirability, optimizing customer experiences, and leveraging synergies across its portfolio to drive future growth.